Crude oil futures surged on Wednesday amid declining U.S. supplies and rising geopolitical risks. 

November WTI crude oil surged about $1.60 on Wednesday to $65 a barrel, reaching a three-week high. Prices were able to climb above the 200-day moving average, where a close above the level could favor the bull camp. Diesel prices also jumped higher for a second day. 

On Tuesday, President Trump gave the green light to shoot down Russian fighter jets entering NATO airspace. Russia has also been mulling over diesel export restrictions due to recent attacks from Ukrainian drones on energy infrastructure. 

Bloomberg reported this morning that two key oil ports halted loading of tankers following warnings of drone attacks. 

The Energy Information Administration’s weekly petroleum report showed that U.S. commercial crude oil inventories fell by 607,000 barrels last week, the lowest since January. That came as stockpiles had declined about 10 million barrels the previous week. 

The long-term fundamental outlook for oil remains bearish due to rising supplies outpacing demand. 

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